Every webhosting company’s dream is to get a massive amount of clients overnight. However, when this dream comes true, many times it turns out to be a curse more than a blessing. Here are the top 3 pitfalls and how to avoid them:

Preventing and Handling Major Outages

Most of a growing webhost’s efforts are geared towards marketing. This is perfectly understandable. But what most webhosts fail to understand is that when a hosting business starts growing, they need to shift more resources in order to create a better infrastructure.

But more importantly, webhosts need to learn how to handle major outages. Despite our best efforts, things can sometimes go wrong. Some webhosts hope that not much of their clients will notice, or some just downplay it. This will lose them lots of customers. Transparency is the best policy. Here’s the golden rule:

Empathize with your customers, tell them exactly what happened, and most importantly, tell them what you’re going to do in order to prevent this from happening again. They will become more loyal than before the outage.

Being Different From Other Hosting Companies

As a webhosting company grows, it needs to create its own personality. Otherwise, it will end up competing with other webhosts on price, not value. This typically attracts the lowest quality clients, and puts it head to head with the bigger guys out there. That’s a recipe for fast failure.

There are two ways a webhost can create its unique personality:

  • Focus on a specific industry: For example, offer hosting for real estate companies. To take this a step further, give them addon services such as development, marketing…
  • Focus on solving a specific problem: For example, you can offer hosting for startups who have reached the growth phase.

This will differentiate you from 99.9% of webhosts out there, and your ideal clients will be eager to pay for your expertise.

Scaling Their Development Efforts

I’ve seen this over and over. Webhosts are really great at scaling servers, but when it comes to scaling their development efforts, they fall short. I’ll put it in David Loke’s words, CEO and Co-Founder of Readyspace, a cloud hosting company which offers hosting for many needs such as IoT, Big Data, and DevOps. Here is what David had to say:

David LokeBased on my experience, growing webhosts struggle to find good developers who can build and scale their platforms. Most of them need constant hand-holding, and fail to understand the business objectives behind their technical efforts.

David hits the nail on its head. In fact, this issue is so common to the extent that I have created a service to help webhosts hire stellar developers every time.

Hopefully this will help you be more aware of the challenges you’ll face as your hosting company grows to the next level. Are there any challenges I have missed? If so, let me know in the comments below.